Q1 2024 FinVolution Group Earnings Call

[music].

Ladies and gentlemen, Hello, and thank you for participating in the first quarter 'twenty 'twenty four earnings conference call for sudden relation great.

Operator: Ladies and gentlemen, hello and thank you for participating in the first quarter 2020 earnings conference call for FinVolution Group. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a question and answer session. Today's conference call is being recorded. I will now turn the call over to our host, Jimmy Tan, Head of Investor Relations for the company. Jimmy, please go ahead.

All participants are in listen only mode.

After managements prepared remarks, there will be a question and answer session. Today's conference call is being recorded.

I will now turn the call over to our highest Jimmy Tan head of Investor Relations for the company Jimmy Please go ahead.

Speaker Change: Hello, everyone and welcome to our first quarter.

Jimmy Tan: Hello everyone, and welcome to our first quarter 2024 earnings conference call. The company results were issued via Newswire services earlier today and are posted online. You can download the earnings release and sign up for the company email alerts by visiting the IRR section of our website at irr.finvgroup.com. Mr. Tiezheng Li, our Chief Executive Officer, and Mr. Jiayuan Xu, our Chief Financial Officer, will start the call with their prepared remarks and conclude with a Q&A session.

Jimmy Tan: Earnings Conference call. The company results what issue via Newswire services earlier today and are posted online you can download the earnings release and sign up for the company email alerts by visiting the IR section of our website at IR docs can be good dot com.

Jimmy Tan: <unk>, our Chief Executive Officer, and Mr. Jive N Shea, our Chief Financial Officer will start the call. We've got prepared remarks, and conclude with a Q&A session.

Jimmy Tan: During this call, we will be referring to several non-debt financial measures to review and assess our operating performance. These non-GAAP financial measures are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with US GAAP. For information about these non-GAAP measures and reconciliation to GAAP measures, please refer to our earnings press release. Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor Prohibitions of the U.S.

Jimmy Tan: During this call we will be referring to several non-GAAP financial measures to review and assess our operating performance.

Jimmy Tan: These non-GAAP financial measures are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U S. GAAP.

Speaker Change: For information about these non-GAAP measures and we constantly are referring to GAAP measures. Please refer to our earnings press release.

Jimmy Tan: According to the Private Securities Litigation Reform Act of 1995, forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today. Further information regarding this and other risks and uncertainties is included in the company's filings with the U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements, except as required under applicable laws. Finally, we post a slide presentation on our IR website providing details of our results for the quarter. I will now turn the call over to our CEO, Mr. Tiezheng Li. Please go ahead, sir.

Speaker Change: But we continue please note that today's discussion will contain forward looking statements made under the safe Harbor provisions of the U S. Private Securities Litigation Reform Act of 90 95.

Speaker Change: Forward looking statements involve inherent risks and uncertainties as such the company results may be materially different from the views expressed today.

Speaker Change: Information regarding these and other risks and uncertainties are included in the company's filings with the U S economy that extra commission.

Speaker Change: The company does not assume any obligation to update any forward looking statements, except as required under applicable law.

Speaker Change: Finally, we posted a slide presentation on our IR website, providing details of our results for the quarter.

Tiezheng Li: Thanks Jimmy. Hello everyone, and thank you for joining our earnings call. This is Tiezheng Li, CEO of FinVolution Group. We are happy to speak with you today.

Speaker Change: I'll now turn the call over to our CEO. Mr. <unk>. Please go ahead Sir.

Speaker Change: Thanks, Jamie Hello, everyone.

Speaker Change: And thank you for joining our earnings call. They said, Hey, Joni seal offering diluting group.

Speaker Change: Yeah happy to speak with you today.

Tiezheng Li: We kicked off 2024 with continued strong execution of our local focus, the Global Outlook Strategy, in line with domestic and international macro trends. China's economic recovery is progressing gradually, while Indonesia and the Philippines are growing more vigorously. There has been a pick-up in economic and consumption activities during China's recent holidays. However, the M1 financial data in April turned negative year over year, sending mixed signals to the market.

Speaker Change: We kicked off 2020 fold, we continued strong execution of our local for Chris Global outlook strategy.

Speaker Change: In line with our domestic and international micro trends.

Speaker Change: China's economic recovery is progressing gradually while Indonesia, and the Philippines are going more vigorously.

Speaker Change: There has been a pickup in economic and consumption activities during China's recent holidays.

Speaker Change: The M. One financial data in April turned negative year over year funding mix signals to the market.

Tiezheng Li: Bearing such a situation in mind, we will continue to closely monitor the macro environment while leveraging on our technologies to increase the efficiency of our operations. Driven by our local focus, Global Outlook Strategy, we have served around 31 million borrowers across China, Indonesia, and the Philippines as of the end of the first quarter of 2024. Our first quarter's performance highlights our strategy's effectiveness as well as its flexibility. Transaction volume in China reached 46 billion RMB, up 10% year-over-year, while outstanding loan balance increased to 64 billion RMB, up 4.4% year-over-year.

Barry: Barry in such situation in mind, maybe will continue to closely monitor the macro environment.

Barry: Leveraging our technologies to increase the efficiency of our operations.

Barry: Driven by our local focus global outlook strategy.

Barry: Have served around certainly one made in borrowers across China, Indonesia, and the Philippines.

Barry: The end of the fourth quarter of 2024.

Barry: Our fourth quarter performance highlights our stretch Jason effectiveness as well.

Barry: Collectability.

Speaker Change: Transaction volume in China reached at 46, speeding RMB up 10% year over year.

Speaker Change: Sunbeam loan balance increased $6 4 billion RMB up full focus on the year over year.

Speaker Change: Notably.

Tiezheng Li: Node Play, Our ongoing investment in information speed advertising has drawn further expansion in the number of new borrowers in the China market, up 3% year-over-year, accounting for 20% of unique borrowers. Transaction volume from new borrowers contributed around 15% of total transaction volume, reflecting potential for our continued progressive growth in the China market. Meanwhile, we leveraged our leading technologies, strategic agility, and deep experience to overcome various challenges facing our Indonesian operations since last quarter, and delivered solid growth in our international market. International transaction volume reached 2.21 billion RMB, up 41% year-over-year, while outstanding loan balance expanded to 1.27 billion RMB, up 34% year-over-year, demonstrating our ability to capture opportunities in different countries.

Speaker Change: Our ongoing investment in information feed advertising drove further expansion in the number of new borrowers in the China market.

Speaker Change: Up 3% year over year accounting for 20% of our unique borrowers.

Speaker Change: Transaction volume from your borrowers contributed around 15% of total transaction volume.

Speaker Change: Reflecting potential full hour continue the progressive girls in the China market.

Speaker Change: Meanwhile, we leveraged our leading technologies.

Speaker Change: Through a T J J did hit and the deep experience to overcome worst trading just facing our Indonesia operations since the last quarter.

Speaker Change: And they delivered a solid growth in our international markets.

Speaker Change: International transaction volume reached 2.21 billion RMB up 41% year over year, while outstanding loan balance expanded 212, 7 billion RMB up 34% at year over year, demonstrating our ability to capture opportunities in deeper into countries.

Speaker Change: Driven by our effective social media stretchy, the member of our renewal borrowers in international market increased by 13% year over year and represented 41% of our unique borrowers.

Tiezheng Li: Driven by our effective social media strategy, the number of our new borrowers in international markets increased by 13% year-over-year and represented 41% of unique borrowers. International business stands as our second growth driver, and its revenue contribution has been increasing steadily. For the first quarter, revenue from international business reached 595 million RMB, up 33% from the same period last year and representing 19% of total revenue.

Speaker Change: International business stands as our second the girls driver and it's a revenue contribute contribution has been increasing steadily.

Speaker Change: For the first quarter revenue from international business reached.

Speaker Change: 500, and the 95 meeting RMB up 33% from the same period of last year, and representing 19% of total revenue going forward. We believe the segment's contribution to revenue we will continue to increase as we strengthen our existing markets and expanding into new <unk>.

Tiezheng Li: Going forward, we believe this segment's contribution to revenue will continue to increase as we strengthen our existing markets and expand it into new territories. We will also continue to make and drive progress on the technology front in the first quarter of 2024. In February, our extensive collaboration with leading global academic institutions produced three papers, which were selected for the 38th Annual AAAI Conference on Artificial Intelligence, one of the world's top artificial intelligence conferences with an acceptance rate of just 24%. Through our ongoing investment in larger language models, we have self-developed a proprietary technology called Xcoder. It increases our programmers' efficiencies through automated software bug detection and autorevision of frequently used code, which greatly reduces human errors.

Our retiree.

Speaker Change: We also continue to make and to drive progress on the technology front in the first quarter off to a new 24 in February our extensive collaboration with leading global academic institutions produced three papers Mitchell.

Speaker Change: Michel Wurth selected for the 30 <unk> annual <unk> conference on artificial intelligence bump.

Speaker Change: Bumped their words talked artificial intelligence comprehensive.

Speaker Change: Acceptance reach of just 24%.

Speaker Change: Third our ongoing investment in larger longer bid models via self developed a proprietary technology called <unk>.

Speaker Change: It increases our programmers efficiencies through auto software bugs detection and ultra revision of frequently yields codes.

Speaker Change: Which greatly reduce human error.

Tiezheng Li: We have also utilized AIGC to streamline advertising calls and increase efficiency, producing more than 20% of video content with AI for Vivid and precise advertising that resonates with our target borrowers while reducing market costs. On a related note, we leveraged our advertising, social media influence, and video content to expand our brand awareness in our international markets on popular channels such as Facebook, TikTok, and Instagram. Our followers reached 1.1 million, 855 thousand, and 234 thousand on those sites, respectively, during the fourth quarter of 2024, up 87%, 55%, and 10%, respectively, year over year.

We have also utilized aig's to streamline Ida, we're taking costs and increase efficiency.

Speaker Change: Producing more than 20% of video content.

Speaker Change: I believe it and the precise idea, we're tightening that rather than H beat our target birth route reducing marketing costs.

Speaker Change: On a related note, we leveraged our advertising social media influence and the video content to expand our brand awareness in our international markets on popular channels, such as Facebook take talk and the in store grab.

Speaker Change: Our followers reached 1.1 meeting 855000, and 234000 Unbilled sites respectively.

Speaker Change: During the fourth quarter of 2024 up 88, 7%, 55% and 10% respectively year over year.

Speaker Change: Before I will wrap it up.

Tiezheng Li: Before I wrap up, a brief update on our ESG efforts. In line with our co-commitment to financial inclusion, we continue to support the backbone of the economy by facilitating loans for small business owners during the fourth quarter. Both teams are making gradual and sometimes fragile recovery. We facilitated a total of 13 billion RMB of loans for small business owners, up 26% year-over-year. Furthermore, we made additional strides with our public welfare program aimed at improving farmers' livelihoods through the live stream of agricultural products, created in collaboration with China's National Weightlifting Team. This initiative has attracted over 2 million viewers and increased farmers' incomes with more than 2,000 online transactions.

Speaker Change: Update on our ESG efforts.

Speaker Change: In line with our Coke commitment to financial inclusion, we continue to support the backbone of the <unk>.

Speaker Change: Economy by facilitating loans for small business owners during the fourth quarter.

Speaker Change: The strength of gradual and sometimes fragile recovery.

Speaker Change: The facilitator, a total of 13, beating RMB of loans for small business owners.

Speaker Change: Up 26% year over year.

Speaker Change: Furthermore, they made additional strides our Republic backfire program aimed at improving farmer livelihoods zero, the livestream of agriculture products.

Speaker Change: <unk> in collaboration meet the Chinese nation National Weightlifting team.

Speaker Change: This initiative has.

Speaker Change: Over 2 million viewers and increased farmers' incomes to be the more than 2000 online transaction.

Speaker Change: Yeah.

Speaker Change: In summary.

Tiezheng Li: [inaudible] We made most of the first quarter's positives through leveraging on our technologies and increasing efficiency. Firm execution of our local focus, Global Outlook Strategy, ongoing tech innovation, and a deep dedication to our vision of financial inclusion propelled our steady progress and long-term sustainable growth. We will remain committed to fostering inclusion, accessibility, and technology as we create value for stakeholders and deliver better financial services to borrowers throughout the Pan-Asian region. With that, I will now turn the call over to our CFO, Jiayuan Xu, who will discuss our operational and financial results.

Speaker Change: We made most of the first quarter its pulse tapes zero, leveraging on our technologies and increasing efficiency.

Speaker Change: Firm execution of our local fortress global outlook stretching ongoing tightening nutrition and a deep dedication to all.

Speaker Change: Our vision of financial inclusion.

Speaker Change: We're proud of our steady progress and the long term that's attainable girls.

Speaker Change: We remain committed to fostering inclusion accessibility and the technology as we create baidu for stakeholders and deliver a better financial services to borrowers throughout the Pan Asian region.

Julia: With that I will now turn the call to our CFO Julia she who will discuss our operational and financial results.

Julia: Thank you Lee and Hello, everyone welcome to our first quarter 274, a need for.

Jiayuan Xu: Thank you, Li, and hello everyone. Welcome to our first quarter of 2024. Let's go through our key results for the first quarter. To be mindful of the length of our news call today, I encourage listeners to refer to our first quarter earnings press release for further details. As Li mentioned, China's recent microdata, coupled with economic activities during the holidays, reflect China's slower-than-expected economic recovery, with a few bright spots that are outpacing the overall trend.

Julia: Let's go through our key results for the fourth quarter to.

To be mindful of the length of haul when this call today I encourage listeners to refer to our first quarter earnings press release for further details.

Ilene: As Ilene mentioned, China as the recent macro data coupled with the economic activities during the holidays reflect china's slower than expected economic recovery.

With a few bright spots that are outpacing the overall trend.

Ilene: China's GDP expanded by five 3% in the first quarter compared to the same period last year and by one 6% compared to the previous quarter.

Jiayuan Xu: China's GDP expanded by 5.3% in the first quarter compared to the same period last year and by 1.6% compared to the previous quarter. In March, China's manufacturing activity expanded for the first time in six months, with the manufacturing PMI reaching 15.8, up 1.7 points month-over-month. Non-manufacturing PMI rose to 53 points, boosting composite PMI to 52.7 points, up 1.6 and 1.8 points month-over-month, respectively. All three indexes are within the expansion range, indicating an acceleration in enterprise production and operational activity. The Consumer Confidence Index improved to reach 89.4 points in March, but it is still hovering at a relatively low level.

Ilene: You're much China's manufacturing activity expanded for the first time in six months with the manufacturing PMI, reaching 15 eight points.

Ilene: One seven months over months.

Ilene: No manufacturing PMI Rose to 53 point was 10 <unk> to 52 seven points up 1.6, and eight months old.

Ilene: Activity.

Ilene: All three index, we deemed <unk> ridge, indicating an extra reaching an enterprise production and operational activities.

Ilene: The consumer confidence index improved to reach 18 984 points in March was due hovering at relatively low levels.

Ilene: As we mentioned transaction volume in the China market grew 10% year over year with an annual increase in a number of new borrowers, reflecting all what commitment towards progressive growth in China to make market.

Jiayuan Xu: As Li mentioned, transaction volume in the Chinese market grew 10% year-over-year with an annual increase in the number of new borrowers, reflecting our commitment to progressive growth in China's small market. Our average borrowing rate in the first quarter remained stable at IRR 22.3%, validating our commitment to financial inclusion. Stabilizing our strong presence and reputation for reliability, we grew our cumulative number of founding partners to 102 institutions during the quarter. This broad base, coupled with China's recovery economy, boosted our funding partners' confidence in facilitating loans for better quality borrowers, improving our funding costs by an additional 50% on a quarterly basis.

Our average borrowing rate in the fourth quarter remained stable at 20 to 22, 3% validating our commitment towards my initial inclusion.

Ilene: Capitalizing on our strong presence and the <unk>.

Speaker Change: Reputation for reliability, we grew all will accumulate team member all founding partners to 100 and the two institutions during the quarter.

Speaker Change: These broader base, coupled with China's recovery economy closely to all while funding partners confidence in for say 18 lows for better quality borrowers improving our funding cost by an additional 50 bps on a quarterly basis.

Speaker Change: Looking forward, we are confident to achieving continuous optimization in our funding costs throughout the rest of the year.

Jiayuan Xu: Looking forward, we are confident in achieving continuous optimization in our funding course throughout the rest of the year. Furthermore, we have made great strides in our ABS insurance initiative, which will further diversify our funding sources. Regarding risk, we expect our Vintage Delinquency to remain stable at 2.5% for the fourth quarter.

Speaker Change: Furthermore, we have made great strides in our <unk>.

Speaker Change: Insurers initiatives.

Speaker Change: Which will further diversify our funding source.

Speaker Change: Regarding risk, we expect old vintage delinquency remains stable at two 5% for the fourth quarter.

Meanwhile, we drove an improvement in all the reason to April they went delivers eight to five 2% through a shift in our loan collection strategy.

Jiayuan Xu: Meanwhile, we drove an improvement in our recent April Day 1 delivery to 5.2% through a shift in our loan collection strategy. The loan collection recovery rate toward the end of the first quarter stood at a healthy range of 86%. Turning now to our international expansion, our crucial second growth driver during the quarter, the cumulative number of borrowers for our international market exceeded 5 million, reflecting our commitment to promoting financial inclusion across all the markets in which we operate.

Speaker Change: Loan collection recover rates towards the end of the fourth quarter stood at a healthy range of 86%.

Speaker Change: Okay.

Speaker Change: Turning now to our international expansion.

Speaker Change: Our crucial second the girls and driver during the quarter. The accumulative number of borrowers will like international market ceded 5 million, reflecting our commitment to promoting financial inclusion across all the market in which we operate.

Speaker Change: You all first international market to Indonesia.

Jiayuan Xu: In our first international market, Indonesia, the economy remains robust, with GDP growth of over 5% in 2023 and a further increase to 5.1% in the first quarter of 2024, driven by resilient domestic consumption and increasing investment. Furthermore, Indonesia's PMI has consistently remained above 15 points for the past 2.5 years, indicating a strong position in the expansion zone. In March 2024, PMI increased by another 1.5 points to reach 54.2 points. Sales of motorcycles, a primary means of transportation in Indonesia, increased 4.5% month-over-month in March to 584,000 units.

Speaker Change: Now that the economy remains robust.

Speaker Change: With the GDP growth of over 5% intending to use three and fluids increased to five 1% in the first quarter <unk> 94.

Speaker Change: Driven by resilient domestic consumption and the increasing investment.

Speaker Change: Furthermore, Indonesia PMI has consistently remained above 15 points for the past two five years, indicating a strong positioning in the expansions.

Speaker Change: In March attorneys on new for PMI increased enel.

Speaker Change: Another one five points to reach 15, four two points.

Speaker Change: Sales of motorcycles, a primary means of transportation, Indonesia increased <unk>, 5% month over month in March to 584000 units.

Speaker Change: We're also glad to share that by leveraging our proven barron's and technology seem to transitioning to better quality borrowers in the China market, our operation in Indonesia have largely overcome the recent challenges posted by interest rate adjustment.

Jiayuan Xu: We are also glad to share that by leveraging our proven experience and technologies in the transition to better quality borrowers in the Chinese market, our operations in Indonesia have largely overcome the recent challenges posed by interest rate adjustment. We will continue to actively monitor regulatory developments and refine our operations accordingly. In the Philippines, our second international market, the government has forecast a GDP growth rate of between 6% to 7% for the full year 2024. Its PMI index has remained in the expansion zone for 8 consecutive months, and the unemployment rate remained low at 3.9% in March 2021.

We will continue to actively monitor revenue give.

Speaker Change: Developments in the refund our operations accordingly.

Speaker Change: In the Philippines, our second international market.

Speaker Change: So many times forecast the GDP growth rate of between 6% to 7% for full year 'twenty 'twenty four.

Speaker Change: It's PMI index has remained in the expansion zoom for eight consecutive months ended the unemployment rate remained low at three 9% in March tender neutral.

Speaker Change: This further both data consumption with growth in household consumption accelerating to five 3% during the fourth quarter of 103 up four 5% in the previous quarter.

Jiayuan Xu: This further boosted consumption, with growth in household consumption accelerating to 5.3% in the fourth quarter of 2023, up from 5% in the previous quarter. All these positive micro-metrics support our strong growth momentum in the Philippines. Overall, our performance in international markets remained solid for the first quarter of 2024. Transaction volume for the international markets grew 41% year-over-year to RMB 2.21 billion, while outstanding loan balance grew 34% year-over-year to RMB 1.27 billion. The number of unique borrowers in international markets was 849,000, up 15% year-over-year, while the number of new borrowers reached 344,000, up 13% year-over-year.

Speaker Change: All of these positive macro matching supply with strong growth momentum in the Philippines.

Speaker Change: Overall, our performance in international markets remains 42 for the first quarter opportunity for.

Speaker Change: Transaction volume for the international markets grow 41% year over year to RMB 2122, 1 billion, while outstanding loan balance grew 34% year over year to RMB 112 7 billion.

Speaker Change: The number of unique borrowers in international markets.

Speaker Change: 814, nice solvent up 15% year over year, while the number of new borrowers reached three foundry and the 44000 up 13% year over year.

Speaker Change: These results highlight a borrower's stickiness on our platform as well as our ability to acquire additional new borrowers through diversified channels with Jasmine social media awareness.

Jiayuan Xu: These results highlight borrowers' stickiness on our platform as well as our ability to acquire additional new borrowers through diversified channels with just social media awareness. Notably, our Philippines operations continue to outperform expectations, with transaction volumes growing 194% year-over-year and 27% contributing 25% of international transaction volume. This outstanding local performance has been widely recognized by regional financial institutions.

Notably, our Philippines operations continue to outperform expectations with transaction volume growth and a 19, 4% year over year and 27% just increasingly.

Speaker Change: Contributing 25% of international REIT transaction volume.

This outstanding low local performance has been widely recognized by regional financial institutions.

Jiayuan Xu: Attracting reputable local funding partners such as C-Bank and Union Bank. Notably, we have entered into a transnational collaboration with Zbank to facilitate loans in both our overseas markets. Our credit facility from these two partners in the Philippines alone, totaling nearly six hundred and fifty million people, greatly enhances our presence in the country and facilitates our efforts to promote financial inclusion. Looking ahead, we are confident we will continue to attract reputable financial institutions to join us in the quest to advance financial inclusion in the country.

Attracting reputable local founding partners, such as Sea Bank and the Union Bam.

Speaker Change: Notably we have entering two trust.

Speaker Change: Presentation, Larry collaboration with the bank to facilitate loans in both our overseas markets.

Speaker Change: Our credit facility from these two partners in the Philippines alone to total nearly six.

Speaker Change: First country and the 50 million pesos greatly enhances our presence in the country and facilitating our efforts to promote financial inclusion.

Speaker Change: Looking ahead, we are confident we will continue to attract reputable financial institutions to Jos in the class of trade about financial inclusion.

Speaker Change: Country.

Speaker Change: As we strengthen our presence in the Philippines, and again greater a combination for our local partners and the regulators, we believe our Philippines operation Zoom a bigger role.

Jiayuan Xu: As we strengthen our presence in the Philippines and gain greater recognition from our local partners and regulators, we believe our Philippines operation will assume a bigger role in our international business. Now, turning to our financial metrics. Driven by strong execution of our local-focused global outlook strategy, total net revenues for the first quarter grew to RMB 3.17 billion, up 4% year-over-year. Our net income was RMB 532 million, an increase of 1% quarter over quarter, reflecting our increased operating efficiency.

<unk> International business.

Speaker Change: Now turning to our financial metrics driven by strong execution of our local focus global outlook strategy total net revenues for the fourth quarter grew to RMB, three 7 billion up 4% year over year.

Speaker Change: Our net income was RMB five country in this $32 million, an increase of 1% quarter over quarter, reflecting our increased operating efficiency.

Speaker Change: Meanwhile, sales and marketing expense increased by 13% year over year to RMB $449 million as we continued to <unk> efforts to acquire new borrowers in both our China and international markets.

Jiayuan Xu: Meanwhile, sales and marketing expense increased by 13% year-over-year to RMB449 million as we continued to strengthen efforts to acquire new borrowers in both our China and international markets. Furthermore, leveraging our unparalleled industry expertise and operational efficiency, we achieved an above-industry ROI of 3.2%. Our leverage ratio, defined as risk-bearing loss divided by shareholders' equity, remained stable at full time.

Speaker Change: Furthermore, leveraging our unparalleled industry expertise and operational efficiency, we have achieved an above industry outweigh all three 2%.

Speaker Change: Our leverage ratio defined as the risk bearing loans divided by shareholders equity remained stable at four times.

Jiayuan Xu: Reflecting Opportunities for Growth when Macroeconomy Nominated, Our total liquidity position, consisting of cash and cash equivalents plus short-term investments, reached RMB8.5 billion, up 10% from a year ago, reflecting a robust balance sheet that is well able to support our business growth, exploration of new opportunities, and consistently return value to our shareholders. Finally, a brief update on our capital return program. As part of our commitment to consistently return value to shareholders, we deployed over US$27 million in the first quarter of 2024 to repurchase our shares on the secondary market.

Speaker Change: <unk> opportunities for growth when macro economy normalizes.

Our total liquidity position consisting of cash and cash equivalents plus short term investments reached RMB eight 5 billion up 10% Brian vehicle.

Speaker Change: Reflecting our robust balance sheet that is well able to support our business growth.

Speaker Change: Exploration of new opportunities and consistently return value to our shareholders.

Speaker Change: Yes.

Speaker Change: Finally, a brief update on <unk>.

Speaker Change: Capital return program as part of our commitment to consistently return value to shareholders. We deployed over U S. T 27 million in the first quarter of 2020.

Speaker Change: To repurchase our shares on the secondary market.

Jiayuan Xu: Cumulatively, we have returned a total of US $632 million to our shareholders through our capital return program since 2018, demonstrating our consistent and sustainable commitment to our shareholders. The company reiterated its full-year 2024 transaction volume guidance for the Chinese market in the range of RMB 195.7 billion to RMB 205 billion, representing year-over-year growth of around 5% to 10%. At the same time, the company expects its full-year 2024 transaction volume for its international market to be in the range of RMB 9.4 billion to RMB 11 billion, representing year-over-year growth of around 20% to 40%. That concludes my prepared remarks. We will now open the call to questions.

Speaker Change: Cumulatively, we have returned a total of U S six country and this $32 million to our shareholders through our capital return program since 2018, demonstrating our consistent and sustainable commitment to our shareholders.

Speaker Change: The company. It has reiterated its full year 274 transaction volume guidance for the China market in the range of RMB 195, 7 billion to RMB 295 billion, representing year over year growth of around 5% to 10%.

This in turn the company expects its full year 200, new for transaction volume for the international market to be an advantage of $9 4 billion to RMB 11 billion representing year over year growth of around 20% to 40%.

Speaker Change: That concludes my prepared remarks, we will now open the call to questions. Operator. Please continue.

Operator: Thank you. If you wish to ask a question, please press star then one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star then two.

Speaker Change: Thank you. Thank you wish to ask a question. Please press Star then one on your telephone and wait for your name to be announced if you wish to cancel your request. Please press Star then two.

Operator: If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Thomas Chong. Your first question comes from Yada Li from CICC. Please go ahead.

Speaker Change: If you're on a speaker phone please pick up the handset to ask your question.

Speaker Change: Your first question comes from Thomas Chong how much.

Speaker Change: Your first question comes from Yodlee and see ICC. Please go ahead.

Speaker Change: But what is normal.

Yada Li: I have two questions for the Management Team. The first one is about the management of overseas business in different regions, such as Indonesia and the Philippines, the market competition environment, and the prospects for this year and future profitability. The second question is, in combination with the current change in the overall balance of assets, as well as the constant growth in overseas business and the increase in profitability, how do you see the overall trend of this year and future profitability? Is there still a lot of room for improvement? Thank you, Management Team. Then I'll do the translation.

Speaker Change: So it sounds like it's on the table.

Speaker Change: Do you go through.

Speaker Change: Okay.

Speaker Change: Have you been to Vito gymboree.

Speaker Change: <unk> syndrome.

Speaker Change: Okay.

Speaker Change: Oh Wow.

Speaker Change: Okay sure.

Speaker Change: So once you get once you said you do have.

Speaker Change: Sure.

Speaker Change: Excuse me.

Speaker Change: Could you kind of 98.

Speaker Change: Great.

Speaker Change: Once you know you're gonna be amongst you should measure of Ohio.

Tom: Good morning, Tom.

Tom: I'll do the translation Hello management.

Yada Li: Hello, management. Thanks for taking my questions. I have two questions today, and the first one is about international branches. I was wondering how you view regulation, market competition, and profit outlook in different regions, such as Indonesia and the Philippines, going forward. Secondly, if we take the asset quality trend and the potential profit overseas into consideration, how should we view the trend of the tick rate for this year and the future? That's all, thank you.

Tom: My questions I have two questions today.

Tom: First one is about national branches.

Tom: Wondering how to view the regulation market competition, and our profit outlook in different regions, such as Indonesia, and the Philippine going forward.

If we take the asset quality trend.

Tom: And the potential property overseas into consideration how do view the trend of a take rate for this year any future. That's all thank you.

Speaker Change: I'll tell you about went up with actually I said out of the windshield.

Tiezheng Li: Thank you, Yada. Now, let me answer these two questions. First, regarding the situation of our overseas business, as I mentioned earlier, let's review it first. We have been doing business in Indonesia for 6 years, and we have been doing business in the Philippines for 4 years. In total, we have 10 years of experience in overseas business. In the past few years, we have seen rapid growth in the overseas market. In the past three years, we have achieved a 100% recovery rate.

Tiezheng Li: We also achieved a 19% increase in overseas revenue compared to last year. In terms of number of customers, the total number of registered users is 26 million, which accounts for 14% of the total number of registered users in the group. The number of registered users is more than 5 million, which accounts for 17% of the total number of registered users in the group.

Speaker Change: Either way, we will move to highlight <unk> no issue.

Speaker Change: In the Jimmy a few dollars here.

Speaker Change: Two xiaowei push out woman.

Speaker Change: And she said to me.

Speaker Change: And you calculate your own municipal junior a whole Philippine woman year toward.

Speaker Change: For the full year related to that I hope <unk> Jonathan Junior.

Speaker Change: <unk> usual high level of hydrogen are proficient quite like what you're saying you'll also note. When you go through the <unk> now who'll highlight usual issue.

Jumpy genius.

Speaker Change: It isn't that an established module.

Speaker Change: So just wonder John <unk>, who is sitting on Chengdu.

Speaker Change: $10.

So <unk> tried to do so.

Speaker Change: So the other avenues.

Speaker Change: Now food up reopened as a total.

Speaker Change: <unk> just wanted to go back and you should see how you wish in Hawaii, we can truly when will you be changing feet on charter.

Tiezheng Li: So there is no doubt that overseas business has become a very strong second growth curve for us. [inaudible] Since the end of last year, there has been an adjustment in terms of pricing. We made such an adjustment at the beginning of this year, on January 1st. Last time, we also mentioned that we need some time to digest the adjustment. Because some key assumptions and key business elements need to be adjusted accordingly.

Yes.

Speaker Change: Not to cheat and look which al will definitely.

Speaker Change: New gold, which ended up kind of as you can claw.

Speaker Change: You're going to see when machines due to other you'll have less to Tom.

Speaker Change: <unk> jewelry that didn't eliminate the charges and a whole bunch of edge and union.

Speaker Change: So I think thats managing to millennials that Johnny the charge it sounds to me at all.

Speaker Change: Now turning to our children that you saw was just shut ins should yet that changing shelf when.

Speaker Change: Glenn gender each year.

Speaker Change: Sure Glenn Chin each year, Jean <unk> children.

Tiezheng Li: Now we are very happy to report to you that in April or May, we have basically completed the adjustment in terms of the business model. The business has entered a more stable state, and this is reflected in several aspects.

We have <unk> to go to the ball guys Y'all woman Doug.

Speaker Change: So this will yield will mentioned E ticketing gather that charges.

Speaker Change: Secondly, most of our maintenance, which also a bunch of them.

Speaker Change: Yeah, which enrich on hydrogen geologic up until when Paddy Hugo divisions.

Speaker Change: Literally you, let your Columbia D that agile continuous to be consistent.

Tiezheng Li: First, the customer base quality has significantly improved. We now have a 10% increase in the share price of Indonesia and a 5.6% increase in the share price of China. This is an improvement in customer reliability. Secondly, the transfer rate of our high-quality science has also become higher. Now, the transfer rate of the entire biotech transaction has increased by 23% before the price adjustment. The third one is also the most important, which is in terms of risk. From the fourth quarter of last year to now, the risk has been optimized by 23%. Fourth, we are continuing to improve the level of cooperation between institutions. Now we have reached 6.

Speaker Change: <unk> won't be sustainable.

Speaker Change: It won't be Samsung.

Speaker Change: The coordination to.

Speaker Change: <unk> de Itajai charm.

Jonathan: As usual my user cookies are hardly a gala machines, a single sourcing in conjunction holiday Jonathan you guys heard any changed assumptions about that.

Jonathan: These kinds of issues.

Jonathan: Definitely.

Jonathan: Two <unk> <unk> to <unk>.

Is that a single Felicia you want a beverage artisan.

Jonathan: This is an element that you called.

Jonathan: Its tissue that you shouldn't assume that you're entitled to do that.

Tiezheng Li: Last but not least, we see that due to the adjustment of the pricing, competition in the market has been weakened. In addition, we have improved our operating efficiency, so we have optimized 10% of the order price. So the final result of these factors is that, in this round of price adjustments, our take rate is now back to about 10%. This level is basically the same as the take rate before the previous price adjustment.

Jonathan: So hopefully that addresses that Donald among kind of logically you would think that a charge in <unk>. This is.

Jonathan: Josh.

Jonathan: <unk>.

Speaker Change: Thank you gentlemen.

I'll do the pieces, so even without for Kodak.

Speaker Change: Hello beverages.

Speaker Change: <unk> through June Th <unk> women's I think our children with a T created change that youll $40 five inches.

Speaker Change: Now, let's take a shaping Goldman Sachs, just hinting that challenge in the pancreas keep tabs.

Speaker Change: Talbot.

Speaker Change: So he will initially.

Speaker Change: Sheila Trinian cited between gastric Punjab limbo stuck.

Tiezheng Li: So we are very confident that we can maintain a take rate of about 10% throughout the year at this price level. On the same basis, we expect that Indonesian businesses can achieve full profit on the accounting side. Of course, as I introduced last time, accounting is still different from actual business. From the perspective of business, the actual profit situation of Indonesian businesses will be better.

Speaker Change: The decrease.

Speaker Change: Just as that achieved in.

Speaker Change: In the year, we didn't go quite as Sumit niches trinian unique downturn.

Speaker Change: <unk>.

Speaker Change: Accordingly, <unk> oncogene has to use a portal.

Speaker Change: But what you should see that if any of the transmission crunches hardship.

Speaker Change: Yes.

Sure.

Julian: Okay. Hi, This is Julian let me do the translation for you for US. Okay for the first question that has to have <unk> on the international market situation, we have been doing out into nature of market for six years and for the Philippine markets. We have been in operation for over four years and in total we have over 10 years of experience in.

Jimmy Tan: Okay, hi Yada, this is Jimmy. Let me do the translation for you first. Okay, for the first question, right, let us do an overall recap on the international market situation. We have been doing our international market for 6 years, and for the Philippine markets, we have been in operation for over 4 years. And in total, we have over 10 years of experience in doing international operations. I would say that the international business has been growing very quickly, with Kager Group of over 100%, with CAGR growth of 100% in revenue for the past 3 years, and revenue contribution from this segment has also reached 19% of total revenue, with total registered users reaching 26 million, representing 14% at group level, and the cumulative numbers of followers also exceeded 5 million, representing 17% at group level. This international business is confirmed as the group's second group driver.

Julian: International Accretions.

Julian: I would say that the international business has been growing very quickly with <unk> group of over 100%.

Julian: CAGR group of 100% in revenue for the past per year in revenue contribution from this segment has also reached 19% of total revenue with total registered users, which was $26 million, representing 14% at group level and the cumulative numbers of borrowers also exited a $5 million representing.

Julian: 17% at group level.

Julian: International business is confirmed as the group's second growth driver.

Jimmy Tan: And as you know, there was a cap adjustment earlier this year on the borrowing rate. And after five months of business adjustment, we have optimized our borrowers, cohorts, models, and data strategy to achieve stable operation. I will borrow cohort data.

Speaker Change: And as you know there has been a adjustment earlier this year on the borrowing rates.

Speaker Change: And after five months of business adjustment, we have optimized our bottles cohorts module and beat our strategy to achieve stable operations.

Speaker Change: Our borrowers cohort data.

Jimmy Tan: Our borrower's cohort quality increased in average ticket size, and repeat borrowing rates are up 10% and 5.6%, respectively. The conversion rate for higher quality borrowers increased, with approved credit lines increasing by 23%, and most importantly, our risk performance improved by 23% on a sequential basis. Our effort has also been recognized by local financial institutions, with the number of funding partners increasing to six. And from a customer acquisition perspective, we have seen small and mid-sized platforms reducing their acquisitions, and we managed to reduce our acquisition costs by 10%.

Speaker Change: Our borrowers cohort quality increase in average ticket and repeat borrowing.

Speaker Change: 10% and five 6%, respectively. The accomplishment brief Ohio quality, both increase with approved credit line, increasing by 23% and most importantly.

Speaker Change: Our performance improved by 23% on a sequential basis.

Speaker Change: And the number our efforts has also been recognized by local financial institutions with the numbers of funding partners, increasing to six and from customer acquisition perspective, we have seen small and science platforms, reducing the acquisitions and we managed to reduce our acquisition costs.

Speaker Change: 10%.

Speaker Change: And coming to take rate.

Speaker Change: After that after the strong adjustment our team we are confident to maintain at around 10% in 'twenty plentiful and DT similar to what we have in our before the pricing adjustment.

Jimmy Tan: After this round of adjustment, our tick rate, we are confident to maintain at around 10% in 2024, and this is similar to what we had in our tick rate before the pricing adjustment, and in 2024, we expect our international business to realize profits of over 10 million.

Speaker Change: And in 2024, we expect our Indonesian business realized profits of over 10 of millions.

And also kind of look at it being a flipping Jimmy if we shall hear suits us AEG to witches Roman.

Tiezheng Li: Let's take a look at the Philippines. I shared some numbers with you earlier.

Tiezheng Li: In the first quarter, the turnover rate was very fast. The total turnover was 5.6 billion. The growth rate was close to 200%. The closing rate was 27%. The total turnover in the Philippines was 25%. The competition is relatively stable, and the competition is relatively good. So we expect that in the second quarter, the whole deal will still maintain a speed of more than three-digits.

Speaker Change: Machines to the whole goods and Julian answer to the other.

Speaker Change: And our whole home essential UGG pathogen jamba.

Speaker Change: <unk>.

Speaker Change: Uh huh.

Speaker Change: The whole thing on <unk>.

Speaker Change: Well actually no.

Speaker Change: As of June.

Speaker Change: Good Joel <unk>.

<unk>, yes.

Speaker Change: Downhaul so yes.

Archie too good.

Speaker Change: Good.

Speaker Change: Apologize our Sui Sander Donegal.

Speaker Change: Daiichi to Sunday women do if it had been a year, we assessed a lot on data to the June quarter.

Tiezheng Li: Our business in the Philippines is recognized and supported by the local financial institutions. You can see that we already have two local financial institutions that have become our partners. Our revenue has reached 6.5 billion dollars. So in the future, we are very confident that we will continue to gain more support and recognition through the expansion of local infrastructure funds.

Speaker Change: Genco glitches.

Speaker Change: The old <unk> really anja on Peter <unk> to women.

Speaker Change: So on the switching.

Speaker Change: <unk>.

Speaker Change: We will I won't mind clean sheet tissues that one Peter.

So you can put in something with all controller John <unk>.

Speaker Change: Jim.

Speaker Change: Hello, coming to our Philippines market grew in the first quarter has been rapid transaction volume in the first quarter reached RMB $560 million up 194% year over year end, 2027% sequentially, representing 25% of total volume in the international market.

Jimmy Tan: Hello, Yada Li. Coming to our Philippines market, growth in the first quarter has been rapid. Transaction volume in the first quarter reached RMB560 million, up 194% year-over-year and 27% sequentially, representing 25% of total volume in the international market. The regulations in the Philippines are relatively stable, and our second quarter growth is expected to be in triple digits as well. We have also attracted reputable financial institutions such as Seabank and Union Bank to be our funding partners of over 650 million pesos. And going forward, we are confident to continue our rapid momentum in the Philippines.

Speaker Change: The regulations in Philippines is relative.

Speaker Change: Relatively stable and our second quarter growth is expected to be interpreted as well.

Speaker Change: We have also attracts reputable financial.

Speaker Change: Institutions, such as the banking Union bank to our funding partners of over 650 million peso.

Speaker Change: And going forward, we are competing to continue our rapid momentum in the Philippines.

Speaker Change: Doug <unk>.

Speaker Change: A woman static relationship with what you saw from telecom, so shouldn't tell mcguinty.

Tiezheng Li: My second question is about the future trends of TICO. First, let's look at China.

Tiezheng Li: China's overall price has stabilized. Although there were some fluctuations in the risk last year, it has stabilized now. The cost of capital has continued to decline rapidly in the first quarter.

Speaker Change: Anyone wishing to so when do you think that I shouldn't be done with the whole Fujifilm is engineered yourself idea of wellness.

Speaker Change: So if we just use your board awash in Pennsylvania.

Speaker Change: She is an icon nature, where someone needs to ensure that.

Speaker Change: Wholesalers have been.

Vishal: Easy to achieve parts of your question Vishal.

Vishal: Sure.

Tiezheng Li: We are very happy to see that the trend continues in the second quarter. So in the first quarter, you can see that our take rate has recovered to 3.0 from 2.9 in the fourth quarter of last year. From the current situation, we think we can continue to maintain this trend. [inaudible] After the price adjustment in Indonesia, the TickRate has returned to the level before the price adjustment. So the TickRate has stabilized. The Philippines is also in a very healthy situation. So we still have confidence in the TickRate of the future company, which can maintain a good and stable trend.

Vishal: The hotel Archie to know who the ultra conductive excuses tissue type.

So easy to kind of looking at <unk> Junior since you do the eventual inquiry.

Vishal: Sandy.

Vishal: Now to the <unk>, Inc.

Vishal: That kind of will mature the hiseq <unk> tissue tissue parts.

Vishal: Then Gui Genco shareholder John you could take rate that you gave at Juicy.

Vishal: The whole home how are you contractually <unk> women's I think that housing and causing the takeaway that you should with La Quinta holdings.

Vishal: The industry. So he can particularly that uses it to ensure that no.

Vishal: Philippines.

Vishal: 300 <unk> John.

Speaker Change: So you will learn to jingle.

Speaker Change: Single way like also like to create promote high since distinguishing nickel proxy.

Speaker Change: Shareholder.

Yeah.

Speaker Change: Uh huh.

Hello, Yeah, let me do the translation for this question in Israel.

Jimmy Tan: Hello Yada, let me do the translation for this question as well. Although for the Chinese market, there was some fluctuation in our risk last year, but the situation has been stabilized. And you can also see that we had a huge improvement in our funding cost of 50 bps in the first quarter, and going forward in the second quarter, we expect this trend to continue. And this is why our take rate has slightly improved from 2.9% in the previous quarter to 3% in the current quarter. And for our Indonesian market, the take rate has returned to a level of around 10%, similar to what it was prior to the price adjustment.

Jimmy Tan: Hello Yada, let me do this.

Speaker Change: Although for the China market there has been some fluctuation in our release last year.

Speaker Change: <unk> has been stabilized.

And you can also see that we have a huge improvement in our funding costs of 50 BP in the first quarter and going forward in the second quarter. We expect this trend to continue.

Speaker Change: And this is why our take rate has slightly improved from two 9% in the previous quarter to 3% in the current quarter.

And for our international market. The peak rate has returned to a level of around 10% similar to what it has been private.

Speaker Change: This adjustment.

Speaker Change: Yeah.

Speaker Change: Yes.

Speaker Change: Yes.

Speaker Change: Okay. Thank you.

Speaker Change: Okay.

Speaker Change: Thank you. Your next question comes from Thomas Chong from Jefferies. Please go ahead.

Operator: Please go ahead. Thank you. Thank you.

Operator: Okay, thank you, Yada. Thank you. Your next question comes from Thomas Chong from Jefferies.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: 101.

Speaker Change: Okay.

Thomas Chong: Hi, Jamie.

Jamie: Thank you management for taking my question. My question is about how <unk> can improve the.

Jamie: Quantity and operational efficiency. Thank you.

Speaker Change: That's very funny.

Speaker Change: Yes.

Speaker Change: Okay.

Jeffrey: Hi, Jeffrey.

Operator: Thank you. Your next question comes from Thomas Chong from Jefferies. Please go ahead.

Hi, Thomas.

Operator: Hi Jeffrey, uh, hi Thomas. Thank you.

Jeffrey: Our search engine on Gigamon Q1, FY <unk>.

Tiezheng Li: My name is Tiezheng. I will let me answer your question. As for technology, we have been paying close attention to it since we were established and have been investing in it for a long time. If we look back to 2015, our company has accumulated more than 3 billion yuan in investment in technological research and development. At present, we have about 700 colleagues who work in the field of technology research and development. Among them, the proportion of those with master's degrees and doctorate degrees is about 20%.

Jeffrey: While you're cookie tissues, you're sure genome in Tangshan issue easier Scherfig hung Kuan Archer concrete whole Rudolf.

Jeffrey: Choose your tone ruble Mackay Union bulging should you consider <unk> woman dying tissue <unk> essentially you've done <unk>, you've eight we'll sure to ensure tissue patch on one that youre going to not Cheadle not sure sure sure John as yet and I'm sure that you'll be targeting traveller.

Jeffrey: You guys talked about <unk>.

Tiezheng Li: We have also established a lot of long-term cooperation with international universities and universities in the field of research and talent. In our opinion, there are different levels of improvement and improvement in terms of business and cost. In the past period of time, we have improved our risk-accuracy by investing in AI, including smart voice services and code support. Through continuous investment, we have continued to improve and innovate our business. For example, we know that Xinyi's investment in Huoke as a message flow is an important part of us.

<unk>.

Jeffrey: <unk> culture is that Korea, and Taiwan, Vietnam agenda, illogical and door that you got <unk> tool.

Jeffrey: No one really know congrats usual Thai woman that you go out.

Jeffrey: <unk> got Cheyenne, Cartesian Permian <unk> yield one Ghansham Antoine Thailand, one for me I'll put on that if you judge yet not a yield on what you, though you guys sure Jim Wilmington AI.

Tiezheng Li: In the past period, we have invested more than 2 billion yuan in message flow. In this process, we have also established a very good relationship with Xinyi. [inaudible] Through the continuous iteration of the message flow conversion effect, we have also used these models to control the user's mind about different materials and users' interests.

Jeffrey: <unk> got whole wish on mute sorry, yes.

Jeffrey: Oklahoma <unk>, all wonderful in Kent, England, do <unk>, <unk> and <unk> will do the one year <unk> got whole rule woman tile Alejandro yield actions, you've got Cheyenne petition.

Jeffrey: <unk> oil cut whole foundry when you have a lead.

Now women dietary Dr Shah CEO of <unk> <unk>, one and of course, you do I should young woman she should tighten growth essentially with <unk> Xiaomi and Youll Tulwar should you unnoticed here total.

Speaker Change: Women's hydro of course, I'm going to get tight candela.

Speaker Change: <unk> maintained targa EOG geological curious how should you just hogwash your answer that you got whole bank failures I didn't hear that.

Speaker Change: Wonder woman <unk> reduction.

Speaker Change: No women on what <unk> got drunk got shoveled extras with you that yesterday <unk> watching women do you put on the suite high how do you include assumed you back when we owned procedure.

Jimmy Tan: So far, we have achieved more than 20% of the total technology flow through AI-generated videos. Our material costs have also been reduced by 60%. In addition, the production of our materials has also been greatly improved. In addition, at the cost end, we continue to invest in technology, and we have also built our technology center stage, which helps us to continue to deepen our potential in the business middle and rear stage processes to improve the operating efficiency of the enterprise.

Speaker Change: No woman Tunghwa shown conduct each year.

Keith: Keith will shipping, but I'll, let <unk> touch on growing the chief with Hollywood comment travel about darker now of industrial hydrogen, but John <unk> behind our <unk> digital suite hydrogen right now.

Keith: You want to jump out there to attrition.

Keith: The only one that's actually home and one woman homegrown Kyushu electric boat shoes, you'd hold rule you thought all of that.

Keith: Could you don't Hi, Andre women die yield actually got onboard hydro lutron to shoot our shingle Fulham each one key enabler in children.

Jimmy Tan: As you can see, in the first quarter, with a 4% increase in income, the company's overall G&A ratio and return ratio achieved further optimization, reaching 2.6% G&A ratio in the end. If we extend the time further back to 2019, before the pandemic, we can see that the G&A ratio of the company reached 2.6% in the first quarter. If we extend the time further back to 2019, before the pandemic, at that time, our GNV accounted for about 7.3%.

Speaker Change: <unk> partners some got much in Hong channel considered on keto gender illogical Chumpy Colombian yeah, Sheila Jean politically, but all of US will know Jan HPV should total about <unk>, Google Wambach should you achieve without Hong Kong dollar tree <unk> Rd Julien.

Speaker Change: <unk> January to jump in and talk I should that passenger cheating.

Jimmy Tan: Through these continuous investments, the overall efficiency of the company has been greatly improved. At the same time, in the first quarter of the year, the proportion of revenue generated by the production capacity of our professional staff achieved an increase of 8.4% compared with last year. The above are some of the effects of our investment in technology. Hi Thomas.

No matter, what Tricia tissue that digital rule should consider contributing in Charlotte a dollar profitable adhesion.

Speaker Change: You said, how much did not cite in children Daiichi to women nudging Tanya.

Speaker Change: <unk> channel <unk> showed the PD <unk> Chilean passengers audience through attrition.

Speaker Change: I'm not sure I could AECOM in Asia, how rutile adage, a shovel and shifting shop.

Speaker Change: Hi, Thomas Let me do the translation for our CEO.

Jimmy Tan: Hi Thomas, let me translate for our CEO. Technology is the core of FinVolution, and we have remained consistent in our investment in technology throughout the year. For example, we have consistently invested in R&D since our establishment, with a cumulative R&D investment of nearly $3 billion since 2015. We have around 700 experts in R&D, with 20% holding Master's or Doctorate degrees.

Speaker Change: Technology is the core of evolution and we have remained consistent investment in technology throughout a year.

Speaker Change: For example have consistently invest in R&D since our establishment of cumulative R&D investment of nearly $3 billion since 2015.

Thomas Chong: Around 700 experts in R&D with 20% holding master's or doctorate degrees and Additionally, we have established long term academic collaborations relationship with seven leading universities.

Jimmy Tan: Additionally, we have established long-term academic collaborations in partnership with seven leading universities, and all these have our improvement in the aspect of operations and cost can be supported by our technologies. For example, in terms of customer acquisitions, we have invested over $2 billion in our information feeds and, through the accumulations of billions of user data and strategies involving over 100,000 iterations. We have built a beat mode for us.

And all this.

Thomas Chong: Our improvement in the expect of operations and costs can be supported by our technologies. For example in terms of customer acquisitions, we have invested over $2 billion in our information feeds and true the accumulations of billions of user data and stretch strategies involving over 100000 iterations.

Thomas Chong: We have built a deep moat.

Thomas Chong: Ross.

Ross: And more than 20% of our video content is now January the AI.

Jimmy Tan: And more than 20% of our video content is now generated by AI, and this has reduced our video production costs by about 60%. And cost-wise, we have also been deploying technology in our back-end operations and thereby optimizing our internal operating efficiency. And in the first quarter alone, our revenue achieved a year-over-year growth of 4% while G&A expenses as a percentage of revenue decreased to 2.6%. And during the period of pre-COVID to COVID, our G&A expenses as a percentage of revenue were 7.3%. And in terms of labor efficiency, during the first quarter of 2024, average revenue per employee increased to 8.4% year-over-year. And these are the benefits that we have achieved through our tech investment.

Ross: And this has reduced our video production costs about 60%.

Ross: And cost wise, we have also been deploying technology with our back end operations and thereby optimizing our internal operating efficiency and in the first quarter alone our revenue achieved a year over year growth.

<unk> percent, while G&A expenses as a percentage of revenue optimize to two 6% and during the.

Ross: Periods of pre Colby to call beat our G&A expenses.

Ross: Percentage of revenue was seven 3% and in terms of labor efficiency. During the first quarter 'twenty 'twenty four average revenue per employee increased to eight 4% year over year and these are the benefits that we have achieved through our tech investment.

Speaker Change: Thank you.

Speaker Change: Your next question comes from Alex <unk> from UBS. Please go ahead.

Operator: Your next question comes from Alex Ye from UBS. Please go ahead.

Xiaoxiong Ye: Thank you, Mr. Guan. My question is mainly about user demand. We can see that in the first quarter, whether it is from new customers, domestic new customers, or old customers, the conversion rate and the conversion rate of new registered users seem to have a relatively significant decline compared to the same period last year. But our sales and marketing cost is actually maintaining the same.

Okay.

Sure.

Speaker Change: When he is going to go.

Speaker Change:

Speaker Change: She's Jose.

No.

Speaker Change: If you'd look at his.

Speaker Change: Homes, you could go into an <unk>.

Speaker Change: Lots of them.

Speaker Change: Uh huh.

Speaker Change: There'll be Julien.

John: Yes, John.

John: As you all know that make those kinds of marketing costs as it relates and comfortable with it.

Xiaoxiong Ye: I would like to ask the reason for this decline. Is it because we are more cautious in terms of risk, or is it more of a decline in user demand? In terms of outlook, for example, from April to May, what is the situation for user demand, whether it is a trend of peer-to-peer or return-to-peer, and what is our expectation? Is there any indication for our all-year guidance?

Quite.

John: Shutdown that you've got your Haynesville.

John: Joey Women's iPhone King County, Shankardass hygiene saw timber.

John: Most of that one.

John: Well as usual.

Yeah, No no don't.

John: One is that kind of hobbies.

John: So far the good.

John: She told us.

John: All lines at home people don't mind leader you can choose.

John: Not too.

John: So you mentioned the India.

John: Sure indication.

Jim: Well thank you Jim.

Xiaoxiong Ye: So I've noticed that in Q1 for our domestic business, we have seen new customers, new broad acquisitions, repeat borrowers, and the commercial ratio for the domestic business all appeared to have declined on a year-on-year basis. I'm wondering, was that money driven by our tightened equity approval or money from weakened equity demand? And related to that, how should we think about the outlook going forward? What was the equity demand trend in April and May? And was that an implication for our four-year target? Thank you. Hi,

Jim: So.

I noticed that in Q1 for our domestic business.

Jim: We have seen the new customer.

Sharon: This is Sharon.

Speaker Change: Repeat borrowers.

Speaker Change: Commercial ratio for the domestic business.

Speaker Change: Oh appear to have decline.

Speaker Change: I'm wondering was that mainly driven by our tightened liquidity approval or may need some.

Speaker Change: Steady demand.

Speaker Change: Related to that.

Speaker Change: You think about the outlook going forward.

Okay.

Speaker Change: Any demand trend.

April and May.

Speaker Change: And what's that named patient below our full year target. Thank you.

Tiezheng Li: Hi Alex, I'm Tiezheng. I'm here to answer your questions. First of all, let's take a look at the overall situation in China in the past period, as well as the market conditions in the small and medium-sized sectors. In the first quarter, we saw that GDP increased by 5.3% on the one hand, and the export rebound in the process and the PMI of our manufacturing industry improved a lot. On the other hand, we also saw a rare negative growth in M1, which we just announced in April, as well as a decrease in the total number of social socialization and a lack of confidence in consumers.

Alex: Hi, Alex.

Alex: Hey, Joel Wallach with icon.

Speaker Change: Some of them in <unk>.

Speaker Change: So he'll agenda, our michie, who wish.

Sure.

Speaker Change: What you do I should again chunky.

Speaker Change: Women's saw Datacom Rodrigo <unk> women's <unk> each year.

Speaker Change: You should have around June.

Speaker Change: <unk>.

Speaker Change: When you do the hot easier to grow conduct if army element.

Speaker Change: GDP that you've gotten through that all of US do we get some quarter I'm going to <unk>.

Speaker Change: <unk> <unk>, <unk> <unk> or <unk> in the showroom bulk of one <unk>.

Speaker Change: Sharply shut in that you got to.

Speaker Change: Will that catch on Zalviso changing political don't Ya man, so he's Hong Kong growth.

Tiezheng Li: So at the whole macro level, it is a relatively complicated situation. In the past period, we have seen some changes in terms of demand and risk in our small and medium-sized retail sector. In the second half of 2023, we can see that the overall credit risk of the market has risen. (Inaudible) However, the warm-up situation is still slightly lower than we expected or compared to previous years. The trend of future risks still depends on changes in the environment.

Speaker Change: <unk> you mean.

Speaker Change: No one will conduct.

Speaker Change: While most of our dielectric etch are all in <unk>.

Speaker Change: <unk> I showed you in women's home huge whole foods you Antoine.

Speaker Change: Near term agenda here.

Speaker Change: KPN one.

Speaker Change: No they are Daniel J <unk>.

Speaker Change: <unk> <unk> do you guys see in that front, you're actually also a function of that.

Speaker Change: Dai Ichi to Casher from Janet.

Speaker Change: <unk>, John Dewey Jaguar, Judy and Jan shipping Windows high share.

Speaker Change: Especially not hopefully not electrical Ching Kwan upbeat women <unk> here in the heart.

Speaker Change: Issue.

Now <unk> not sure not going to do you see the type of what Jim that you ship.

Speaker Change: Yeah.

Tiezheng Li: Second, from the perspective of demand, we see that in the first quarter of this year, considering the impact of seasonal factors such as the Spring Festival, we think that overall demand is relatively stable. However, after entering the second quarter, demand has dropped. The data of the socialization you just saw, and the data of socialization in April have also been verified. Recently, we are facing some complicated situations in China. We mainly adopt a strategy of high-quality growth. Specifically, it can be represented by several aspects.

Speaker Change: Dr. Tom <unk> and EG do on oncology dollars Eagle <unk> unique outside the.

Speaker Change: No more Jeremy Schwartz on Tito's future challenges <unk> challenges should be option window that actually died.

Speaker Change: <unk> argued with Youre holding on now its future and actually also charge Alba <unk> tissue Soufan assurance Fuji as she also what you enjoy them.

Speaker Change: Tier one wins Grenada, Jacob <unk>, Johnny here for the <unk> Treme in no moment without hydro now shingle culturally cultural anthropologist Australia <unk> <unk>.

Speaker Change: But the economic woman tissue Pingo, <unk> Judge, England, Fujian, you called point yet.

Tiezheng Li: The accuracy of the identification and the tightening of the strategy to a certain extent. We have realized that our overall risk has entered a relatively stable state. Alex also mentioned that our vintage risk is at 2.5%, and our return on investment and return on investment are relatively stable. (Inaudible) As you can see, in the first quarter, our total funds decreased by 50 bps. , In addition, we also implemented a 17% optimization of the two-digit number on the Huo Ke Fei Bi.

Speaker Change: Be it that you're going to do.

Speaker Change: Now <unk> not eating Chengdu that take Australia showed you know I'm not sure. She alone that you've got 20 functional general dollar Yugo Pwc no contact.

Alex: I mean <unk> Alex.

Alex: Gol will material from China, Minsheng, Doug actually die.

Alex: I have already on vintage you talked I shall I deal with the stripping on the Elutriator you can quit quadrant, which any of those <unk> being the Johnny got stronger.

Alex: Let the Argos <unk> jewelry for women homegrown cotton go on between what you Sugarcoat Union <unk> Sheng you don't we'll make sure you cannot shut other vehicle shall leader.

Alex: But I cannot draw EG to warm and nurturing, graduating Colombian Columbia shutdown level sugar beets <unk>.

Alex: Meanwhile, enrollment I spoke of maybe comment on Google.

Alex: <unk> again, we showed our passengers should geological Johan users once youre in outside January Xiaomi will make <unk> Xi'an electrical heating to include a ketchup.

Tiezheng Li: At the same time, we also implemented a certain degree of improvement on the Huan Bi in the GNA. In the end, we achieved a relatively reasonable income level. As mentioned earlier, our take rate is currently around 3.0. Third, through reasonable customer input and detailed operations on old customers, we have also achieved a certain degree of business stability and growth. In the first quarter, our new customers' trading volume accounted for 15%. Our old customers, due to the constant investment and accumulation of our customers in the past, so our old customers' survival rate is more than 30% in the past three years. Our load-bearing rate is more than 80%.

Alex: Now to donate your shallow amigo, Sean due equally to John that Youre, showing stripping chemie would shake out on that take rate, which has showed that.

Alex: <unk> Royal Johnnie equal contact.

Alex: The T sand going to Wilmington.

Unknown Executive: <unk> <unk> <unk> <unk> Chairman, Jim Sidoti Go Union Omega shallow you didnt come due the aggregate yield of agenda now.

Unknown Executive: Now women Dai ichi to them that <unk> can be technology growth pattern issue no. One would've allow qunar you may go onto our <unk> type cohort extra shoot whole bunch again so.

The last call that you're going to ultra.

Unknown Executive: <unk> talked about.

Unknown Executive: <unk> okay.

Tiezheng Li: This also effectively alleviates the pressure on businesses by reducing demand and tightening risks. Looking at the past 24 years, we can see that the industry is facing some challenges. Back to FinVolution itself, we also saw some opportunities through our internal optimization and improvement. These opportunities include the basic stability of the risk, and some positive trends. In addition, our capital costs will continue to fall.

Unknown Executive: Okay, I'll now Youll shelf Mangala <unk> Shah cellphones, actual Gina daylight that Eagle.

Unknown Executive: Beyond that as we go into reality okay.

Unknown Executive: The whole time on our senior and genuine now women condo Google at home.

Unknown Executive: <unk> premium do you hit Hawkeye.

Unknown Executive: To that end without seeing yet so it should not want me of candela.

Unknown Executive: <unk> and <unk>.

Unknown Executive: <unk> bulk haulage.

Unknown Executive: And that kind of keeping when dean <unk>.

Unknown Executive: Shanghai, you said future.

Unknown Executive: No that's within home and how we deal with the shutdown.

Unknown Executive: As you know women die of tissue.

You don't want that in Charlotte that you've got you've got coming on the hygiene.

Unknown Executive: Sure that will catch on the Canadian mainline outside reorder cultured <unk> Xiaomi and.

Tiezheng Li: And we still have room for improvement when it comes to improving our operational efficiency. In addition, we can further help our customers to achieve a certain level of business growth. Over the past 24 years, we have faced many challenges and uncertainties, but we are confident that we can overcome them with our hard work. Our company will achieve a certain level of business growth by prioritizing risk and reasonable income.

Unknown Executive: Ghana Genie border Bowman <unk> you didn't go into electrical yields just hasn't gone. So you know who <unk> senior note women <unk> childrens trading nowhere manner.

<unk> not <unk> not at bottom.

Unknown Executive: Johan <unk> hopefully to show either Jim Hong Channel will mysteries, yet you didn't do that.

Unknown Executive: Okay.

Jimmy Tan: Hello Alex, this is Jimmy. Let me do the translation for Tim.

Toomey: Hello, Alex This is Toomey, let me do the translation.

Speaker Change: 14, Okay first of all let us recap, the China macro economy and the <unk>.

Jimmy Tan: Okay, first of all, let us recap the Chinese macroeconomy and the microcredit industry that we are in. China's economy presents a complex situation with GDP growth reaching 5.3% in the first quarter, along with a rebound in exports and improvement in manufacturing PMI. However, do note that there was also a rare contraction in social financing and M1, along with a decrease in social retail sales and weak consumer confidence. This is a rather mixed signal, and for the industry in which we operate, we have also observed changes from the demand and risk ends.

Speaker Change: <unk> credit industry that we are.

Speaker Change: China economy presents a complex situation with Judy GDP growth between five 3% in the first quarter, along with a rebound in export and improvement in manufacturing PMI. However, I do know that that was supposed to Iraq contraction in Scotia financing and <unk>, along with a decrease in distributor sales and weak consumer confidence.

Speaker Change: This is a rather mixed signal.

Speaker Change: And for the industry, which we operate we have also observed changes from the demand in <unk> and overall credit risk increasing the second half of Franklin Street and remain relatively stable in the first quarter, but there'll be coverage is still slightly below our expectation and demand was relatively stable in the first quarter.

Jimmy Tan: Overall, credit risk increased in the second half of 2023 and remained relatively stable in the first quarter, but the recovery is still slightly below our expectation, and demand was relatively stable in the first quarter due to seasonal factors such as the Chinese New Year, but fluctuated when entering the second quarter, as validated by the Mixed Signals that we have seen earlier.

Speaker Change: Due to seasonal factors such as Chinese can fluctuate when entering the second quarter daily data Baidu.

Speaker Change: Mixed signal that we have seen earlier.

Speaker Change: And under this complex macro environment <unk> has implemented previous strategies.

Jimmy Tan: And under this complex microenvironment, FinVolution has implemented various strategies to counter this complex macroenvironment by enhancing our risk assessment model and patterning approval rates to ensure the overall stability of our risk metric. As Alexis has introduced earlier, our vintage delinquency has maintained stable at 2.5% with day one delinquency rates at 5.2%, while loan collection recovery rates were at 86%, and leveraging our dual-wheel effect of technology and operation We have seen a sequential decline of 50 bps in our funding costs and a year-over-year decline of 120 bps in our funding costs, while customer acquisition costs were optimized by 17% compared to the last quarter, and G&A expenses also decreased by 7% year-over-year.

Speaker Change: To counter this.

Speaker Change: Complex macro environment.

Alexey: Our risk assessment model and patterning approval rates to ensure the overall stability of our lease metric as Alexey <unk> has introduced our vintage delinquency has maintained stable at two 5% with day, one delinquency rate at five 2%.

Speaker Change: Loan collection recovery was at 86%.

Speaker Change: And leveraging our Huawei, which type of technology and operational efficiencies we have seen.

Speaker Change: Sequent sequential decline of 50 an.

Speaker Change: Our funding costs and a year over year decline of 120 between our funding costs, while our customer acquisition costs will optimize by 17% compared to.

Speaker Change: To the last quarter and.

Speaker Change: <unk> expenses also decreased by 7% year over year and all of these measures and your boss to achieve a stable take rate of 3%.

Jimmy Tan: And all these measures enable us to achieve a stable take rate of 3%. For example, our consistent investment in customer acquisition, with an in-depth focus on repeat customers, has led to stable business growth. 30% of our borrowers have been on our platform for more than 3 years, and over 80% of the loans were facilitated for repeat borrowers, effectively elevating the periodic cost by fluctuating demand and tightening approval rates, and looking ahead in 2024.

Speaker Change: Our consistent investment in customer acquisitions with in depth Lucas on repeat customers has led towards stable business roof.

Speaker Change: For example.

Speaker Change: 30% of our borrowers have maintained on our platform for more than three years and over 80% of the loans will present data for repeat borrowers effectively elevating the pressure caused by fluctuating demand and tightening approval right.

Speaker Change: And looking at hidden plenty painful.

Jimmy Tan: China's economy has some challenges and also in our industry as well, but we have also seen some opportunities, such as the stabilization of risk, funding cost improvement, and our enhancement of our efficiencies and focus on repeat borrowers. And with all these measures that we have implemented, we are still confident to maintain a healthy level of growth amidst a challenging macroenvironment.

Speaker Change: China economy has some challenges and also in our industry as well, but we have also seen some opportunities such as the stabilization of funding cost improvement and our enhancing.

Speaker Change: On our efficiencies.

Speaker Change: And our focus on repeat borrowers.

Speaker Change: And with all these measures that we can implement that we are still confident to maintain a healthy level of growth.

Speaker Change: Challenging macro environment.

Speaker Change: Okay.

Okay.

Speaker Change: Thank you.

Operator: Thank you. Your next question comes from Hannah Han from Nomura. Please go ahead.

Speaker Change: Our next question comes from kind of hand from Nomura. Please go ahead.

Hannah Han: Thank you, Mr. Guan. I have two questions. The first one is about the current shareholding rebuilding plan. Can you provide more progress and details? Is there a new plan to further increase the shareholding value? The second question is that we have observed an increase in cash in the first quarter. I would like to ask about the future of these cash plans. Can you provide more details on how to improve operating efficiency? Yeah, let me translate the question.

Brian: This is Brian.

Brian: Orange County.

Speaker Change: You cannot draconian downturn I Gotta go upward.

Michael.

Speaker Change: Sure sure sure go no go.

Speaker Change: No.

Speaker Change: So youre seeing that got you got you highlight an important.

Speaker Change: Nah gasolines.

Tricia: Thank you Tricia.

Tricia: You mean.

Tricia: Yeah.

Tricia: Well our branches here in your main customer.

Tricia: Oh no no.

Sheila Jean: I think also Sheila so I can assure you that you've got to eat chicken.

Speaker Change: Yes, let me translate my question.

Hannah Han: Like the first question regarding the share repurchase program, could you give us more details on the current process? Also, does MENGJU have a new plan to further increase shareholder value? For the second question, we observed an increase in cash in 1Q, and could you provide more details on the future use of this cash? And additionally, how does the company plan to improve its operating efficiency? Thank you.

The first question regarding the share repurchase program.

Speaker Change: Could you kind of asked more details on our current contracts.

Speaker Change: I also want to have in your plan to further increase.

Speaker Change: The shareholder value.

Speaker Change: The second question.

Speaker Change: Observe an increase in cash.

Speaker Change: Q.

Speaker Change: And could you provide more colors unless you train yourself this crash and additionally, and how does that kind of alcon to insurance I think.

Speaker Change: Thank you.

Speaker Change: Yeah.

Jiayuan Xu: Thank you, Hanna. Now, let me answer these two questions. First, regarding the situation of our repurchase, as we mentioned earlier, in the first quarter, our total repurchase amount was 27 million US dollars. This figure is almost doubled compared to the same period last year. If we look at the total amount of repurchase last year, it accounted for about 28% of the total amount. [inaudible] In addition to the repurchase, we have also completed the payment on the 23-year-old stock market in the first and second quarters of this year.

Speaker Change: Hum.

Speaker Change: Once you have that will help with that just a longer winter.

Either way will be critical that <unk>, that's all been <unk>, each new Orleans and versus equivalent universally on Shin <unk> no.

So it will shorten the shall be changed once yes.

Speaker Change: So instead of getting paid.

Speaker Change: Production from vertical frugal, so now that kind of pilot with them to go back and charge a policy change.

Speaker Change: We will manage each end of the Q1 last year.

Speaker Change: A little on the Hudson.

George: George in semi.

George: The total amount of last year.

George: Joe.

George: That's what the <unk> will move to <unk>.

George: Yes.

George: Look we see that they're going to take off.

Jiayuan Xu: The total dividend amount is 62 million US dollars. So, the total amount of the 23-year-old stock market, the repurchase, and the dividend is about 16 million US dollars. The total shareholder return is about 49% of last year's total profit. We will continue to do the dividend repurchase. Last time, we also mentioned our strategy. We should be the first to do this in this industry. It has lasted for six years, and we will continue to create long-term value for shareholders under the premise of maintaining our business growth. And it is a strategy that is leading in capital return.

George: <unk>.

George: Now let me take that.

So we will then take the syngas and yen.

George: Total vehicle with Josh I'll take a photo without <unk>.

George: <unk> got obviously E E.

George: <unk>.

Dave.

On the Eagle Ford.

George: She needs needing to.

George: <unk> diverse beverages deal.

George: <unk> will move.

George: So the GC at Eagle.

George: When will you guys.

George: As you saw.

George: <unk>.

George: So you will lose weight day.

George: Jim.

George: In constant dollars.

George: <unk>.

George: Sure.

George: To go towards <unk> judge benches.

George: It doesn't hinder you got somebody of robotic surgery.

Anna: Hello, Anna let me do the translation.

Jimmy Tan: Hello Hannah, let me do the translation. And for our share repurchase in the first quarter, we have deployed 27.2 million, which increased by around one times compared to last year and is 28% and represents around 28%, and we still have $93 million for our buyback program in our quota. And we have also completed our shared dividend distribution of $62 million, and coupled with our shared repurchase of around $100 million for the year of 2023, the total payout ratio was around 49% of Net Income.

Speaker Change: Our share repurchase in the first quarter, we have deployed $7 2 million, which increased by around one comp compared with last year and 8% and represented around 20%.

Speaker Change: And we still have $93 million, our buyback program in our quarter.

Speaker Change: And we have also completed our first dividend distribution of $62 million and coupled with our share repurchase of around 100 million for loss for the year of the inventory a total payout ratio was around 49%.

Speaker Change: Of net income.

Speaker Change: And for share repurchase and dividends, we have been doing consistently for the last six years and have returned about $630 million for our shareholders.

Jimmy Tan: And for Shred Repurchase Antivitam, we have been doing it consistently for the last 6 years and have returned around $630 million for our shareholders. And going forward, we will continue to create long-term value for our shareholders through high-quality growth and a leading capital return program through a combination of dividends and buybacks.

Speaker Change: And going forward, we will continue to create long term value for our shareholders through high quality growth and a leading capital return program through a combination of dividends and buyback.

Jiayuan Xu: The second question is about cash flow. First of all, we want to ensure the healthy growth of our business. We have introduced a lot just now. In fact, the overall growth trend overseas is very good. After the whole price adjustment in Indonesia, we still maintain a very healthy business model and individual profit situation. In the Philippines, the growth rate is very fast.

Speaker Change: Got it.

Speaker Change: Sure.

Unknown Executive: So as Andy Gomarsall buttons, if a year with <unk>.

Unknown Executive: She goes on me.

Speaker Change: No women to the highlights.

Unknown Executive: Yes.

Unknown Executive: <unk>.

Unknown Executive: It turned on introduce hydro fleet on patrol.

Unknown Executive: E ticketing to the chosen one.

Unknown Executive: Now women policy, if we don't encounter.

Unknown Executive: To the G&A.

Unknown Executive: To potentially that you could even think it you know.

Unknown Executive: Philippines.

Unknown Executive: So there's no solution. So we don't quite see women.

Jiayuan Xu: Therefore, we need to ensure a cash supply. We will focus on new customers and large-scale photo acquisition. In terms of photo acquisition, we have made significant progress in Indonesia and the Philippines. However, there are still some processes to go through.

Unknown Executive: Due to a four minute juices sell concentration genotype.

Unknown Executive: Literally nobody says it all she is young shinnecock with it at all.

Unknown Executive: Hi shipyard actually legal.

Unknown Executive: Which not womens.

Unknown Executive: Vertical Philippines, she that Idaho mentioned to ensure that each year.

Unknown Executive: <unk> took a picture into the kingdom.

Unknown Executive: Total higher we should do to shuttle.

Jiayuan Xu: After the process is completed, we will report to the market about our specific progress in photo acquisition. On the basis of healthy growth, we will continue to create long-term value for shareholders. The main form is dividend and reimbursement. As you can see from the figures, for the past six years, we have been doing it, and the intensity is constantly increasing. In the past six years, we have accumulated 6.3 billion U.S. dollars in dividends and reimbursements to the market. This figure is nearly half of what we have in the market. Our business is very healthy, and we have a lot of cash reserves. We are confident and capable of maintaining this level of reimbursement.

Unknown Executive: One with <unk> do you want some interesting washout homeaway coastal towns that population of women developed hydrometer at GTT.

Unknown Executive: <unk>.

Unknown Executive: No thats it.

Unknown Executive: Boswell Menudo <unk> technology to shop.

Unknown Executive: Cause I should say $80 moonquake shooter cheesecake with only $1.

Unknown Executive: Tons of it yes.

Speaker Change: Its relationships with Waco, and Thats whats youre doing it.

Speaker Change: The issues are the kind of woman.

That's for sure.

Speaker Change: So they need which is the issues that wouldn't make a catch up.

Speaker Change: L a.

Our Malaysia.

Speaker Change: <unk> <unk>.

Speaker Change: Lucas I imaging Dziedzic Goldman.

Speaker Change: <unk> is getting better leadership team.

Speaker Change: <unk>.

Speaker Change: Women in the year will be at home to the Gencon the stickiness from <unk> to.

Speaker Change: <unk> Asia.

Speaker Change: Yes.

Speaker Change: Sure.

Speaker Change: John ego with all.

Speaker Change: Uh huh.

Speaker Change: Yes.

Speaker Change: And now let me do the translation for Alex's.

Jimmy Tan: And now, let me do the translation for Alexis. Okay.

Speaker Change: Hey.

Jimmy Tan: First of all, we need to ensure sufficient cash for the development of our business, especially our international business group has been very busy. Our Indonesian business, after the cap adjustment, has maintained healthy take rates, whereas the Philippines is also growing at a very fast momentum. And in terms of local licenses, we have achieved significant progress in all our markets where we intend to have more local licenses, and we will share more when there is more concrete information available.

Speaker Change: First of all we need to ensure sufficient cash for the development of our business, especially our international business group has been very fair Pete our Indonesia business. After the adjustment has maintained healthy take rates, whereas Philippines is also growing at a very fast momentum.

And in terms of local licenses.

Speaker Change: We have achieved.

Speaker Change #100: <unk> progressing.

Speaker Change #100: All of our markets that we intend to have more local licenses and we will share more when various mass.

Speaker Change #100: Information is available.

Jimmy Tan: And coming back, over the last six years, we have cumulatively returned $630 million to our shareholders, which is around half of our current market cap. And we are confident that we can maintain a healthy return to our shareholders while delivering high-quality growth in our business.

Speaker Change #100: And coming back over the last six years right. We have cumulative returned $630 million to our shareholders, which is around half of our current market cap and we are confident to maintain a healthy return to our shareholders, while delivering high quality growth.

Speaker Change #100: In our business.

Speaker Change #101: Okay. Thank you.

Speaker Change #102: Thank you there are no further questions at this time I'd like to turn the call back over to management for closing remarks.

Operator: Thank you. There are no further questions at this time. I'd like to turn the call back over to management for closing remarks.

Speaker Change #102: Thank you once again for joining us on our conference call. If you have any further questions. Please feel free to contact and pollution group Investor Relations team. Thank you everybody.

Operator: Thank you once again for joining us on our conference call. If you have any further questions, please feel free to contact FinVolution Group's Investor Relations team. Thank you, everybody.

Speaker Change #102: Okay.

Operator: This does conclude our conference call for today. You may now disconnect your line. Thank you.

Speaker Change #102: This does conclude our conference call for today you may now disconnect. Your line. Thank you.

Operator: [inaudible] ?? ?? ?? ?? ?? ?? ??

Sure.

Speaker Change #102: Okay.

Speaker Change #102: [music].